After a 1 month slowdown in home prices in July, Phoenix area home values returned to their normal growth pattern in August. Low inventory appears to still be the driver of the price increases, especially in the resale market. The year over year price increases remain strong, but not "out of control" as we have seen in the past which is a positive indicator of continued, controlled growth for the foreseeable future.
The overall average home price in August increased by 0.8%, moving from $299,993 to $302,688. The increase over August 2016 was 8.8%. The average price per square foot was unchanged at $147.
Inventory increased very slightly to 15,458 homes for sale as did the number of homes sold, moving up to 7,756. This indicates that there is a two month supply of homes on the market, which is a seller's market.
The breakdown of homes currently available remained unchanged for the most part, and homes under $150,000 remain very difficult to find. The percentages of available homes are: $0-$150,000 (5% of the market), $150,000-$250,000 (25%), $250,000-$500,000 (43%), $500,000+ ($27%).
Foreclosures and short sales continue to stay at their record low rates of 0.9% of the market and 0.7% respectively. They continue to be an insignificant portion of the market.
Here is a breakdown of the market changes, based on average sale price in August compared to July, in some of the individual cities in the Phoenix metro area:
Ahwatukee - Increased from $317,306 to $339,729 (7.1%)
Anthem - Decreased from $319,430 to $303,982 (4.8%)
Avondale - Decreased from $220,849 to $218,793 (1%)
Cave Creek - (Median Price) Decreased from $415,000 to $402,500 (3.1%)
Chandler - Decreased from $337,087 to $333,694 (1.1%)
Fountain Hills (Median Price)- Decreased from $386,600 to $374,000 (3.2%)
Gilbert - decreased from $354,667 to $341,878 (3.7%)
Glendale - Increased from $239,362 to $247,849 (3.5%)
Goodyear - Increased from $281,443 to $285,149 (1.3%)
Maricopa - Increased from $194,898 to $198,039 (1.6%)
Mesa - Increased from $252,508 to $253,985 (0.6%)
Paradise Valley (median price) -Increased from $1,300,000 $1,413,000 (8.7%)
Peoria - Increased from $288,713 to $292,613 (1.4%)
Phoenix - Increased from $274,679 to $276,636 (0.7%)
Queen Creek - Increased from $307,222 to $320,322 (4.3%)
San Tan Valley - Increased from $220,869 to $226,663 (2.6%)
Scottsdale - Increased from $520,465 to $531,168 (2.1%)
Sun City - Increased from $186,681 to $199,151 (6.7%)
Sun City West - Increased from $215,931 to $232,958 (7.9%)
Surprise - Increased from $240,054 to $240,788 (0.3%)
Tempe - Increased from $273,275 to $276,083 (1%)
